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Medical Device Tax: Stifling Innovation and Hurting Veterans

It should surprise no one that Obamacare contains numerous time bombs of illogical and destructive policy. One such policy, which has recently gained national attention, is the implementation of a 2.3% medical device tax. This tax applies to any and all medical devices, from crutches to high tech surgical equipment. Both Republicans and Democrats have called for a delay, or repeal of the tax, to no avail. Despite the bipartisan push, most recently by Congressman Erik Paulsen, the administration has failed to act, and now it may be too late; the first medical device tax deposits are due to the IRS in less than two weeks.

The tax, which is expected to raise $30 billion in new revenue, was forced through by the Obama administration, without debate or pause to examine the potential consequences. Industry experts estimate the tax has already cost 6,000 jobs and could potentially cost upwards of 40,000 in the future, due to the unprecedented increase in manufacturing cost. Furthermore, the implementation of an arbitrary tax on the medical industry will hurt innovation. Manufactures will undoubtedly be less inclined to invest resources toward research and take risks on prototypes when their profit margins are being slashed. Lower margins equate to less disposable income for product development, putting American corporations at a disadvantage globally.

Additionally, the medical device excise tax has the potential to hurt veterans and taxpayers alike. Wounded and retired veterans make up a large percentage of medical device users; the cost of these devices is often shared between the VA and the individual. Adding an additional 2.3 percent to the cost of medical equipment has the potential to disproportionally impact disabled veterans, many of whom live on fixed retirement or disability income. Risking veterans’ financial security while wasteful government programs hemorrhage resources is immoral and entirely irresponsible.

While it is probably too late to stall the implementation of the tax, there is a reasonable chance that legislation repealing the tax could pass. I spoke with Congressman Erik Paulsen’s staff, who indicated that the Congressman would be authoring a bill to do just that in the near future. While the medical device tax is a monotonous issue, certainly less exciting than the Presidents gun grab, it is important for us to remain vigilant. Federal regulations and tax policies such as this appear insignificant when taken alone, however we must remember the US Tax Code didn’t amass to 73,608 pages overnight, it is full of mindless taxes such at this. Encourage your legislators to support Congressman Paulsen's efforts at repeal, with enough targeted support we can save thousands of jobs and protect our status as a global leader in healthcare innovation.

This is just another example of this administrations' war on business . That it adversely affects wounded warriors is disgusting . These are the patriots that the Commander-in-Chief is sending around the world to protect our freedom . He should be ashamed .

Cato Institute Scholar Dan Mitchell has a new video explaining that it is easy to balance the budget without raising taxes on anyone. In his video, he explains that we must rein in excess government spending. According to Mitchell,

Rumors are swirling in Washington, D.C. about a potential "Lame Duck" session that could be held right after the November elections and before the new Congress is sworn-in. If liberals are thrown out of power in Congress this election cycle, the pressure will be that much greater and Harry Reid and Nancy Pelosi will pull out all the stops as a last gasp to enact their socialist agenda. Specifically, the far left will be doing whatever they can to: 1. Pass the Cap and Trade Energy Tax Hike! 2. Slap American Taxpayers with another "Stimulus" Bailout Scheme!

For today's reading, may I suggest my article for Human Events about President Obama's prime time speech last night regarding the Gulf oil spill. Clearly, the man has adopted Rahm Emanuel's exhortation not to let a crisis go to waste. See "Obama Sells Economic Snake Oil", Ross Kaminsky, HumanEvents.com, 6/16/10http://www.humanevents.com/article.php?id=37519

Earlier this month, Pennsylvania Governor Ed Rendell proposed new tax increases to shrink the upcoming 1.7 billion dollar budget deficit. Governor Rendell has already resorted to Orwellian tactics. In an effort to collect from people who owe back-taxes, the Governor proposed an amnesty program which reduces the penalties and half the interest will be waived before the June 18th deadline. The State spent three million dollars in advertisements for this program, and the video is ‘Big-Brother-esque’ warning citizens “We know who you are.”

Last week state legislators in New Mexico failed to pass an operating budget for fiscal year 2011 so they are now in a special session to get one passed. Thankfully, limited government advocates have been able to hold the line on higher taxes and are refusing to burden the working families of New Mexico further. Unfortunately, those calling for higher taxes haven’t backed down either. Your representatives and senators need to hear from you today.

The battle over climate change legislation heats up, as members of the House Energy and Commerce Committee recently held a press conference on the “introduction of the Resolution of Disapproval on the EPA’s carbon dioxide endangerment finding.” The resolution, which is similar to the

Today U.S. Representative Mike Pence (R-Ind.) spoke as a guest speaker at The Heritage Foundation. Rep. Pence began his talk by expressing his passion for blogs. He mentioned that blogs, in his opinion, are an exciting way to communicate ideas.